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Answer to Question #45685 in Other Economics for raghava

Question #45685
what hapens to demand if the price of the substitute good decreases
Expert's answer
First of all, it is necessary to define the concept of substitute good. Substitute goods are the ones that satisfy the same needs of the consumers so can be used to replace one another.
So, a decrease in the price of one substitute good causes a decrease in demand for the other substitute good. So, the demand will decrease because it will be more beneficial for consumers to buy the substitute good with a lower price.

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